RWA Tokenization Report

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This report highlights developments related to the tokenization and on-chain adoption of Real-World Assets (RWAs). Our report includes details on centralized industry players and asset class coverage, as well as coverage of select decentralized finance protocols working to integrate RWAs on-chain. Information is compiled from Digital Asset Research’s (DAR’s) data sources, public sources, media reports, and press releases, and, while wide-ranging, this report covers only representative initiatives related to the development and tokenization of RWAs in the digital asset space.

For a PDF version of this report, please click here.

Introduction

While many cryptocurrencies offer solutions to the challenges encountered by Web3 users, only a few digital assets possess characteristics that connect them to real-world economic activities. Skeptics contend that cryptocurrency use cases are confined to the digital realm, and therefore the value of crypto assets is not sustainable, given that much of daily life revolves around the physical world.

Real-world asset tokenization bridges this gap between the physical and digital worlds. Real-World Assets (RWAs) are assets that exist tangibly offline, such as real estate or equities. Tokenization refers to the process of generating a digital certificate that is impervious to alteration or replication to represent an RWA on a blockchain. These digital certificates are backed by real-world assets as collateral.

Through tokenization, investors can gain access to conventional investment opportunities in a more trustless and efficient manner via blockchain technology. Settlement can be conducted in real time and investors are always able to see where their assets are stored on chain. The spectrum of assets that could be tokenized includes but is not confined to, real estate, private credit, securities, commodities, and fiat currencies. A significant proportion of the world’s financial value is ascribed to RWAs, thereby presenting the potential for RWA tokens to access a total addressable market equivalent to the largest financial markets.

In this report, entities working on RWA initiatives are classified into two groups:

  • Centralized organizations that offer tokenization services are detailed in the CeFi RWA sections.
  • Decentralized Finance (DeFi) protocols that integrate RWAs with on-chain market participants are detailed in the DeFi RWA sections.

Significant RWA Tokenization News

  • Ondo Finance launched USD Yield (USDY), which is a tokenized note secured by U.S. Treasuries and bank notes that offered a 5% APY at launch.
  • Clearpool, a DeFi lending protocol, now supports transactions on Polygon’s zkEVM scaling solution.
  • Maple Finance, a DeFi lending protocol, raised $5 million in funding from venture capital firms, including GSR Ventures, Cherry Ventures, Veris Ventures, and The Spartan Group.
  • Backed Finance, a DeFi project, integrated Chainlink’s price feeds and tokenized multiple assets, including Coinbase’s COIN stock, an S&P 500 index fund, and several bond offerings, across six blockchains.
  • Solana co-founder Raj Gokal expressed optimism about the future of real world asset tokenization in an interview, saying “Real-world asset tokenization indeed presents tremendous opportunities…”

CeFi RWA Industry Players

The table below provides details on a selection of 49 centralized tokenization service providers.

EntityWebsiteFoundedJurisdictionIn-House BlockchainTokenized Asset MarketplaceFractionalization of AssetsSelf-CustodyTotal Funding
10XTS https://10xts.com/2017United StatesYesNoYesYes$2,400,000
ADDX https://addx.co/en/index.html2017SingaporeNoYesYesNo$140,900,000
Aktionariathttps://www.aktionariat.com/2020SwitzerlandNoYesNoNo$1,500,000
AllianceBlock*https://allianceblock.io/2018NetherlandsNoYesNoYes$1,500,000
Alphaledger*https://www.alphaledger.com/2019United StatesNoYesNoNo$7,500,000
AlphaPoint https://alphapoint.com/2013United StatesYesNoYesYes$23,200,000
Arca US Treasury Fund https://invest.arcalabs.com/#/log
 in?redirect=/home
2020United StatesNoNoYesNoUnknown
Archax https://www.archax.com/2018United KingdomNoYesYesYes$41,600,000
Arf https://arf.one/2019SwitzerlandNoNoNoNo$14,100,000
Bankex https://bankex.com/2015United StatesNoNoYesYes$70,600,000
Bondblox*https://bondblox.com/2016SingaporeNoYesYesNo$6,000,000
Brickken https://www.brickken.com/2020SpainNoYesYesNo$2,700,000
Canton Network https://www.canton.network/2023United StatesYesNoNoNoUnknown
Cerchia https://www.cerchia.io/2020SwitzerlandNoYesNoNo$2,700,000
Enigma Vault https://www.enigmavault.io/2020United StatesNoNoNoYesUnknown
Ekta https://ektarealestate.app/2021IndonesiaYesYesYesNo$67,100,000
Fnality International https://www.fnality.org/home2019United KingdomNoNoNoNo$62,000,000
Franklin Templeton https://www.franklintempleton.c
 om/investments/options/money-
 market-funds/products/29386/SI
1947United StatesNoNoYesNoN/A
HoneyBricks https://www.honeybricks.com/2020United StatesNoYesYesYesUnknown
HouseAfrica https://houseafrica.io/2017NigeriaNoYesYesNo$525,000
INX Digital https://www.inx.co/2017United StatesNoYesYesNo$96,500,000
InvestaX https://investax.io/2015SingaporeNoNoYesYes$150,000
Jia https://www.jia.xyz/2022United StatesNoYesYesNo$4,300,000
Lofty https://www.lofty.ai/2018United StatesNoYesYesNo$5,000,000
NYALA*https://www.nyala.de/en/2019GermanyNoYesYesNoUnknown
Ownera https://ownera.io/2018United KingdomYesNoYesNo$20,000,000
Paxos https://paxos.com/2012United StatesNoYesNoYes$543,500,000
Polymath https://polymath.network/2017BarbadosYesYesYesNo$58,700,000
Pontoro https://www.pontoro.com/2015United StatesNoNoYesNo$10,000,000
RealT https://realt.co/2019United StatesNoYesYesNo$10,200,000
RealX https://www.realx.in/about-us2017IndiaNoNoYesNoUnknown
Riddle&Code https://www.riddleandcode.com/2016AustriaYesNoNoYesUnknown
Robinland https://www.robinland.io/2021United StatesNoYesYesNo$2,000,000
SEBA Bank https://www.seba.swiss/2018SwitzerlandNoYesNoYes$246,900,000
Securitize https://securitize.io/2017United StatesNoYesYesNo$100,200,000
Securrency https://securrency.com/2015United StatesNoYesYesNo$64,500,000
Smart Token Labs*https://smarttokenlabs.com/2017AustraliaNoNoNoYes$6,000,000
Spydra https://www.spydra.app/2021United StatesYesNoNoNo$18,300,000
Stobox https://stobox.io/2018United StatesNoYesYesNo$1,200,000
STOKR https://stokr.io/2018LuxembourgNoYesYesNo$8,100,000
Structure https://structure.fi/2020British Virgin IslandsNoYesNoNoUnknown
Taurus Platform https://www.taurushq.com/2018GenevaNoYesNoYes$75,900,000
Texture Capital https://www.texture.capital/2019United StatesNoYesYesNo$1,000,000
Tokeny Solutions https://tokeny.com/2017LuxembourgNoYesYesYes$5,660,000
TOKO https://toko.network/2022Hong KongNoNoYesNoUnknown
tZERO https://www.tzero.com/2014United StatesNoYesYesNo$275,000,000
Vertalo https://www.vertalo.com/2017United StatesNoNoYesNo$7,800,000
WeOwn https://weown.com/en/2017LiechtensteinYesYesYesYesUnknown
WisdomTree https://www.wisdomtree.com/in
 vestments/digital-funds
1985United StatesNoYesYesNo$126,400,000

*Newly added to the report

Key Takeaways

  • 24 of the listed organizations are registered in the United States, followed by Switzerland with 4 projects, and Singapore and the United Kingdom with 3 projects each.
  • Five new projects are added for this month’s report:
    • AllianceBlock is a Netherlands-based tokenization platform specializing in capital markets.
    • AlphaLedger focuses on tokenizing municipal bonds.
    • Bondblox allows for trading of fractionalized government bonds on the blockchain.
    • NYALA is based in Germany and provides services for real estate and bonds tokenization.
    • Smart Token Labs is an Australia-based tokenization provider that has previously successfully tokenized car ownership and FIFA tickets.
  • Only 10 organizations utilize an in-house blockchain network.
  • 32 of the organizations have their own tokenized asset marketplace.
  • 34 of the organizations support the fractionalization of real-world assets.

CeFi RWA Asset Classes

The table below displays the types of underlying assets tokenized by the selected protocols.

EntityReal EstateEquitiesCommoditiesFixed IncomePrivate CreditForexOther (Art, Luxury, etc.)
10XTS
ADDX
Aktionariat
AllianceBlock*
Alphaledger*
AlphaPoint
Arca US Treasury Fund
Archax
Arf
Avalanche Vista
Bankex
Bondblox*
Brickken
Canton Network
Cerchia
Enigma Vault
Ekta
Fnality International
Franklin Templeton
HoneyBricks
HouseAfrica
INX Digital
InvestaX
Jia
Lofty
NYALA*
Ownera
Paxos
Polymath
Pontoro
RealT
RealX
Riddle & Code
Robinland
SEBA Bank
Securitize
Securrency
Smart Token Labs*
Spydra
Stobox
STOKR
Structure
Taurus Platform
Texture Capital
Tokeny Solutions
TOKO
tZERO
Vertalo
WeOwn
WisdomTree

*Newly added to the report

Key Takeaways

  • The most common tokenized asset types are equities (24) and real estate (23).
  • Tokenization of private credit and luxury goods are almost as popular, with 16 and 12 platforms, respectively, providing these services.
  • Tokenization of foreign exchange and commodities based-assets are least popular among CeFi RWA providers.

DeFi RWA Industry Players

The table provides details on a selection of 37 on-chain tokenization providers. Unlike their CeFi counterparts, DeFi RWA providers are generally more permissionless, with a majority of operations conducted on the blockchain.

EntityBlockchain(s)SectorAsset Class(es)Founding YearGeography/Jurisdiction
AmFiAvalancheCreditCredit & Loans, Real Estate2022United States
Alta*Ethereum, Polygon, OptimismTokenizationReal Estate, Automotive2020United States
Anzen*UnconfirmedCreditCredit & Loans2022United States
Backed FinanceEthereum, GnosisTokenizationCredit & Loans, Equities2021Switzerland
BitbondArbitrum, Avalanche, Binance, Ethereum, OptimismTokenizationFixed Income2013Germany
Bluejay FinanceEthereumStablecoin CreditFixed Income2021Singapore
Canza FinanceAvalanche, CeloStablecoin CreditCredit & Loans2020Nigeria
Carapace FinanceEthereumCreditCredit & Loans2021Unknown
CentrifugeEthereumCreditCredit & Loans, Real Estate2017Switzerland
CitaDAOEthereumTokenizationReal Estate2021Singapore
ClearpoolEthereum, PolygonCreditCredit & Loans2021Hong Kong
CredeFiEthereum, BinanceCreditCredit & Loans2020Bulgaria
CredixSolanaCreditCredit & Loans2021Belgium
DexstarEthereumCreditCredit & Loans2021Cayman Islands
DEFYCAAvalancheTokenizationCredit & Loans, Fiat2021Luxembourg
Elysia*EthereumTokenizationReal Estate2020Singapore
EnsuroEthereumInsuranceInsurance Portfolio2021Singapore
FabricaEthereumDerivativesReal Estate2019United States
Florence FinanceEthereumCreditCredit & LoansUnited Arab Emirates
FriggEthereumCreditCredit & Loans2022Switzerland
GoldfinchEthereumCreditCredit & Loans2020United States
HomecoinEthereumStablecoinMortgagesUnknown
LandXEthereumCreditCredit & LoansLithuania
MakerEthereumStablecoin CreditCredit & Loans, Cryptocurrencies2015Denmark
MapleEthereum, SolanaCreditCredit & Loans2020Australia
MaxosEthereumStablecoin CreditCredit & Loans2020United States
Meld GoldAlgorandCommoditiesGold2020Australia
ObligatePolygonCreditCredit & Loans2019Switzerland
Ondo FinanceEthereumTokenizationCredit & Loans2021United States
ParclSolanaDerivativesReal Estate2022British Virgin Islands
Pearl Exchange*PolygonInfrastructureStablecoins2023Unknown
Polytrade FinancePolygonCreditCredit & Loans2021United Arab Emirates
PurpleFiTokenizationReal Estate2022United Kingdom
SaplingPolygonCreditCredit & Loans2022United Kingdom
TangiblePolygonStablecoinLuxury Goods, Precious Metals, Real Estate2021United States
Toucan ProtocolPolygon, CeloTokenizationCarbon Credit2021Switzerland
TrueFiEthereumCreditCredit & Loans2020United States

*Newly added to the report

Key Takeaways

  • Four new protocols were added to our list of decentralized providers:
    • Alta provides tokenization services for a diverse set of assets including real estate and automobiles.
    • Anzen allows users access to yield from short-term debt investments, such as corporate loans and installment lending.
    • Elysia is a real estate tokenization platform based in Singapore.
    • Pearl Exchange is a decentralized exchange that facilitates trading of real world asset tokens.
  • As of the end of August 2023, Credit & Loans is the most common sector for DeFi tokenization products with a total of 23 platforms supporting real-world loans.
  • Ethereum is the most common blockchain among RWA DeFi applications, with 24 out of 36 platforms being run on the blockchain.
  • A smaller portion of the RWA DeFi applications run on the Polygon, Solana, Avalanche, Celo, BNB Smart Chain, and Gnosis Chain blockchains.

DeFi RWA Protocols

The following table provides details on DeFi protocols that integrate real-world assets. These range from on-chain emerging markets lenders to protocols providing on-chain market participants with access to US Treasury Bills.

ProtocolNetworkActive LoansTotal Lifetime LoansTotal Value Locked (TVL)Market Capitalization of Protocol’s Native TokenMonth over Month Change in Market Capitalization (%) of Protocol’s Native Token
CentrifugeEthereum$238,153,802$440,571,955$236,981,768$92,896,546–14.42%
MapleEthereum$129,728,402$2,140,076,800$54,500,000$35,263,2811–25.94%
GoldfinchEthereum$99,470,0007$112,989,773$1,140,000$19,656,820–12.41%
CredixSolana$35,537,576$40,520,152$37,203,269N/AN/A
ClearpoolEthereum$20,436,412$422,674,843$29,503,706$7,512,711–24.25%
TrueFiEthereum$19,002,202$1,740,000,000$23,950,000$34,966,220–6.14%
HomeCoinEthereum$6,114,255$7,955,966$6,309,779N/AN/A
ClearpoolPolygon$65,439$80,674,770$105,390$7,512,711–24.25%
MapleSolanaN/AN/AN/AN/AN/A
Ondo FinanceEthereumN/AN/A$28,681,000N/AN/A

*Newly added to the report

Data is sourced from project websites or other publicly available information, including rwa.xyz.

Key Takeaways

  • Active loan amounts remain relatively stable despite a decline in cryptocurrency prices. With the exception of Centrifuge and Clearpool on Polygon, all other protocols reported a slight decrease in their active loan amounts.
  • Despite a lesser loan issuance amount, total value locked for all of the protocols increased this month.
  • The market capitalization of protocol native currencies decreased significantly in the month of August as the broader cryptocurrency market declined.

DISCLAIMER
All information is provided for information purposes only and provided “as is” without warranty ofany kind. Neither Digital Asset Research (“DAR”) nor its respective directors, officers, employees, partners or licensors make any claim, prediction, warranty or representation whatsoever, express or implied, as to the accuracy, timeliness, completeness, merchantability or the fitness orsuitability for any particular purpose of any information contained herein or any information or results to be obtained from the use of DAR products. DAR may have a business relationship with some of the tokens, projects or entities named in this report, but every effort is made to ensure the impartiality and objectivity of the research. Neither DAR, nor its respective directors, officers, employees, partners or licensors, provide investment advice and nothing contained in this document constitutes financial, investment, tax, or legal advice. No responsibility or liability can be accepted by DAR nor their respective directors, officers, employees, partners or licensors for (a) any loss or damage in whole or in part caused by, resulting from, or relating to any error (negligent or otherwise) or other circumstance involved in procuring, collecting, compiling, interpreting, analyzing, editing, transcribing, transmitting, communicating or delivering any such information or data or from use of this document or links to this document or (b) any direct, indirect, special, consequential or incidental damages whatsoever resulting from the use of, or inability to use, such information. No part of this information may be reproduced, stored in a retrieval system or transmitted in any form or by any means without prior written permission of DAR. Use and distribution of any data or product provided by DAR requires a license from DAR and/or their respective licensors.


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